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<br />e <br /> <br />e <br /> <br />e <br /> <br />I. <br /> <br />21. Tax-Exemot status of the Bonds: Rebate. The City <br />shall comply with requirements necessary under the Code to <br />establish and maintain the exclusion from gross income under <br />Section 103 of the Code of the interest on the Bonds, including <br />without li.itation (1) requirements relating to temporary periods <br />for investments, (2) limitations on amounts invested at a yield <br />greater than the yield on the Bonds, and (3) the rebate of excess <br />investment earnings to the United states if and to the extent <br />that the Bonds do not qualify for available exceptions. In <br />calendar year 1994, the City does not expect to qualify for the <br />$5,000,000 "small issuer" exception to the federal arbitrage <br />rebate requirements. <br /> <br />22. Desiqnation of Qualified Tax-Exempt Obligations. <br />In order to qualify the Bonds as "qualified tax-exempt <br />obligations" within the meaning of Section 265(b) (3) of the Code, <br />the City hereby makes the following factual statements and <br />representations: <br /> <br />(a) the Bonds are issued after August 7, 1986; <br /> <br />(b) the Bonds are not "private activity bonds" as <br />defined in section 141 of the Code; <br /> <br />(c) the City hereby designates the Bonds as "qualified <br />tax-exempt Obligations. for purposes of Section 265(b) (3) of <br />the Code; <br /> <br />(d) the reasonably anticipated amount of tax-exempt <br />Obligations (other than private activity bonds, treating <br />qualified 501(C) (3) bonds as not being private activity <br />bonds) which will be issued by the City (and all entities <br />subordinate to, or treated as one issuer with, the City) <br />during calendar year 1994 will not exceed $10,000,000; and <br /> <br />(e) not more than $10,000,000 of Obligations issued or <br />to be issued by the City during calendar year 1994 have been <br />designated for purposes of Section 265(b) (3) of the Code. <br /> <br />The City shall use its best efforts to comply with any federal <br />procedural requirements which may apply in order to effectuate <br />the designation made by this paragraph. <br /> <br />23. Defeasance. When any obligation of a Bond has <br />been discharged as provided in this paragraph, all pledges, <br />covenants and other rights granted by this Resolution to the <br />registered owner of that Bond (with respect to the Obligation <br />thereof so defeased) shall, to the extent permitted by law, <br />cease. The City may at any time discharge any or all of such <br />obligation(s) with respect to any Bond, subject to the provisions <br /> <br />276405.1 <br /> <br />18 <br />